Gold Rises Above $4,200 as Rate Cut Expectations Fade
Gold rose with the dollar's decline following weaker-than-expected inflation data.
Translated by Qiyas from الراي — Original source
Reuters – Gold prices continued to rise after a US inflation reading came in below expectations, weighing on the dollar and bolstering hopes that the Federal Reserve will refrain from raising interest rates again in October.
Spot gold rose 0.7% to $4,209.70 per ounce, although it posted monthly losses of 5.4%. US gold futures climbed 1.5% to $4,241.90.
The Commerce Department’s Bureau of Economic Analysis reported that the Personal Consumption Expenditures (PCE) price index rose 0.3% last month, following a downward revision of July data to show a 0.1% increase. Over the 12 months through August, PCE inflation rose 2.6%, down from 3.4% in July, which was also revised lower. The core PCE price index rose 3% year-on-year in August.
According to CME Group’s FedWatch tool, traders see a 37% probability of the Fed raising rates in October, down from 45% prior to the release of the PCE data.
